Page 15 - Azerbaijan State University of Economics

N.Akimov., S.Baizakov., A. Oinarov., E.Utembayev: The analysis of the macroeconomic
dynamics and assessment of smart factors’ inputs to the balanced growth rates

the yacht is the aggregate marginal utility. Here, we may make a derivation that the
sum of price variances for goods and services on all types of economic activities
(entailing from labor cost of money is defined as the quality of the national currency
unit and its cumulative marginal utility.
The approach has enormous practical value. The point is that for people with
different levels of income the elements of each utility may carry different values.
Therefore, the prices for utilities are not determined by propensities of individual
customers rather by their groups (poor, wealthy, and others). Here, John B. Clark
demonstrated the possibility of converting market prices for goods and services to
labor-drawn estimates of cost of money.
Reversely, there exists the possibility that the real cost of money may be
formed on the basis of market prices for goods and services whilst market prices are
disaggregated in the cost of specific production factors and by types of economic
activities. Here, John B. Clark‘s merit is in the possibility that has been provided by
his theory of marginal productivity ─ to reveal the necessary elements in order to
match Adam Smith‘s economic theory and Karl Marx‘ reproduction schemes.
Threats. The concept of John B. Clark irrespective of the sufficiently positive
features remains idealistic. First, it is based on Adam Smith‘s income method of
one-dimensional measuring the annual product and thus blocks further development
of Karl Marx‘ two dimensional expense method. In so doing, it serves a single-sided
pseudo-instrument of analysis and assessment of regulatory impacts on the
development of market economy. Based on it, it becomes impossible to
juxtaposition efficiency of use of material labor and financial resources.
Owing to the fact that the concept of John B. Clark (based on the above
evidence) uses the income method of one-dimensional measuring of the annual
product, it makes it impossible to compare the costs with outcomes. Because of this
theory, any costs, expenses of material resources as well as capital are fully justified.
In conclusion, the application of the above described methodological concept
in analyses (according to the quotation by Thomas Pikkety) derails the development
of market economy off the right track and sets it along the opposite track in the
assessment of inflation and real economic growth. Hence, the path towards
disclosing the genuine truth about the real cost of money and the input by science
and technology to the growth rates of countries‘ economic development remains
undisclosed, to date.
2. Alexandr Granberg, The Analysis of the Macroeconomic Dynamics Using
the Economic Models Built on the Reproduction Schemes.
It is of common knowledge that K. Marx deserved all merit in measuring the
economic growth indicators, specifically, on the development of Adam Smith‘s

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